tel: 0117 325 0560
We take the time to read your proposal form and fully understand the advice and financial products you recommend to your clients. By doing this, we can present your application to underwriters so that they fully understand the issues that face your organisation.
We have built strong relationships with specialist underwriters in this sector and work in close partnership so that they can fully support your organisation in the event of a claim.
The FCA requires all authorised Financial Advisors in the UK to have a minimum level of cover which currently stands at €1,120,200 any one claim or €1,680,300 in the aggregate. However, it is common practice for most UK insurers to provide a £1,750,000 aggregate limit of indemnity.
Due to increased levels of competition and heavy underwriting losses, a number of Professional Indemnity insurers have recently withdrawn from this sector. Insurer’s regard IFAs as higher risk and have been exposed to some very large claims in recent years. As a result of this, a number of IFAs have struggled to obtain competitive insurance premiums and underwriters have continued to reduce the level of coverage they are willing to offer. This has been highlighted with a number of insurers specifically excluding high risk investments products such as Key Data, Matrix, Hedge Funds, Arch Cru and Unregulated investment schemes.